HF4581

Purpose

• Establish a state program to reduce risks from emergencies by funding hazard mitigation planning and mitigation projects.
• Create a Hazard Mitigation Fund (account) to provide grants and technical help to eligible local governments and related entities, aiming for long-term risk reduction and protection of people and property.

Key Provisions

• Creates a Hazard Mitigation Fund Grants program in Minnesota statute, administered by the state commissioner.
• Allows use of funds for both planning and practical mitigation projects, and to support activities that reduce future emergency costs.

Eligible Applicants

• Local governments and political subdivisions: counties, cities (including home rule and statutory), towns, school districts, special districts, joint powers authorities, and other local government units.
• Any department, board, commission, or authority acting on behalf of an eligible applicant may submit applications.

Funding Mechanism

• Establishes the hazard mitigation account in the state’s special revenue fund.
• Money in the account can be used for:
  • Grants and technical assistance for planning and mitigation projects.
  • The nonfederal share for federal hazard mitigation programs (like BRIC and HMGP) to the extent allowed by federal law.
  • Money from appropriations, gifts, federal funds, donations, and interest earnings.
• Eligible costs and matching: the applicant’s share of project costs must be at least 25%, with in-kind contributions allowed to count toward that share under detailed rules.

Eligible Activities

• Mitigation planning activities: developing, updating, or implementing local hazard mitigation plans; risk assessments; public engagement; plan adoption.
• Mitigation projects: design, engineering, environmental and historic preservation reviews, permits, construction, acquisition, and other activities needed to complete projects; also includes pre-award costs to apply for federal assistance.
• Planning activities are eligible for funding, and projects must tie to an approved local hazard mitigation plan or FEMA-approved process.

Application Process and Timing

• The commissioner must run an annual grant application cycle and may add cycles in response to disasters or new federal funding opportunities.
• Applications must be filed on behalf of the eligible applicant and cite an official action authorizing the submission and grant agreements.
• If an applicant lacks a current FEMA-approved hazard mitigation plan, they may apply for a planning grant to develop or update one.

Matching Contributions

• An eligible applicant’s share of project costs must be at least 25%.
• Donated materials, equipment, services, and labor can count toward the applicant’s share, subject to rules:
  • Donated nonprofessional labor valued at prevailing federal minimum wage.
  • Donated equipment valued according to highway equipment rates used by the state Department of Transportation.
  • Donated materials and professional services valued at prevailing rates and documented by invoices.
  • In-kind matching hours valued at the prevailing volunteer rate.
  • All donated items must be clearly documented in the application.

Priorities and Evaluation

• Applications are evaluated for:
  • Cost-effectiveness and long-term risk reduction.
  • Flood-related needs tied to local watershed planning and capital improvement programs.
  • Reduction of risk to safety-critical facilities, lifelines, and essential services.
  • Addressing repetitive losses and recurring impacts.
  • Feasibility, readiness, and the applicant’s ability to complete the activity within the grant period.
  • Use of resilience measures, nature-based solutions, or other multi-benefit approaches.
  • Benefits to historically underserved or higher-vulnerability communities.
  • Leveraging federal or other nonstate funding (including BRIC and HMGP) and ensuring long-term operation and maintenance.

Technical Assistance and Coordination

• The program must provide technical help to build local capacity to identify hazards, develop projects, and apply for federal aid.
• The program should coordinate with Minnesota’s hazard mitigation plan and may adopt BRIC/HMGP evaluation methods.
• Flood-related projects should align with local watershed management plans and Chapter 103B and 103D requirements.
• After a state or federal disaster declaration, the program may add supplemental cycles or adjust priorities to support opportunities related to the disaster.

Oversight, Reporting, and Compliance

• Each grant must be governed by a formal grant agreement outlining scope, performance period, reporting, and remedies for nonperformance.
• Grantees must meet applicable state and federal procurement, auditing, and record-retention requirements; misused funds may require repayment.
• By January 15 each year, the commissioner must report to specified legislative chairs summarizing awards and outcomes.

Significant Changes to Existing Law

• Creates a new Hazard Mitigation Grant Program within Minnesota statute and a Hazard Mitigation Fund in the special revenue fund.
• Establishes formal definitions (e.g., eligible applicant, mitigation planning, mitigation project) and a structured grant process with annual cycles.
• Institutes minimum cost-sharing and in-kind contribution rules and a detailed set of selection criteria and reporting requirements.
• Provides for federal coordination (BRIC, HMGP) and alignment with federal hazard mitigation standards.

Relevant Terms - hazard mitigation account - hazard mitigation fund grants - eligible applicant - mitigation planning - mitigation project - nonfederal share - in-kind matching - donated materials - donated equipment - donated services - volunteer rate - cost-effectiveness - long-term risk reduction - flood-related applications - local watershed management plans - BRIC (Building Resilient Infrastructure and Communities) - HMGP (Hazard Mitigation Grant Program) - FEMA - Code of Federal Regulations title 44 part 201 - hazard mitigation plan (FEMA-approved) - 103B and 103D (Minnesota chapters) - technical assistance - grant agreement - reporting and oversight - procurement, auditing, record retention - post-disaster supplemental application cycles